Are Forex Trading Bonuses Worth the Effort?

Forex trading bonuses are a tempting proposal for many under-financed traders. As they stand a fair chance of winning those, even with a small or demo account.

Taking Part in Competitions for the Purpose of Winning Forex Trading Bonuses

Under-financed traders look around for trading competitions where winning is usually based on percentage performance and not absolute profit figures. Traders can stand a chance to win those forex trading bonuses using their small, or sometimes even demo trading accounts. Forex trading bonuses are offered on competitions held by online trading communities or brokers. Usually the prizes come with strings attached, but for many traders it is worth the effort, as there is little to lose (mostly the time devoted), and some significant prizes to be won. Foreign currency trading is just as exciting when one trades in a competition, as it is at any other time where the spirit of competition is in place. Participants are trying to use all kinds of methods to win those competitions, but unless one really knows how to trade exceptionally efficiently, it might be impossible to win. Typically speaking, the average competition winner trades the ups and down of a forex exchange rate on a 10 minute chart, So that even though price moves by say only 70 pips for the day, the smaller intraday fluctuations may add up to as many as 300 pips. That’s how some competition participants end up making extremely high returns over a period of a week or month. The paradox that arises here is, if they are so good traders, then how come they are taking part in a competition. And could they really emulate the same performance in a large size live account? The answer is, probably not, trading like this even on a medium size live account, would make them a handsome monthly profit, far above that of the average job. So the most likely explanation is that traders who win these competitions by achieving ridiculously high returns on their accounts, are using Expert Advisors. Expert Advisor software typically fails sooner or later, it migt be weeks or months, but it does fail after a while or at least fails to make any significant profits. A good, new Expert Advisor however can run for the first month or two, producing such results. And hence it can win at a trading competition.

Winning Forex Trading Bonuses is Not What Serious Traders are After

Serious wise traders know that pressure to win forex trading bonuses will distort their genuine efforts towards long term stable profitability. Profitability which far exceeds any kind of bonus. At the same time they are against Expert Advisors, or at least fully automated trading and fully automated signal generation. The most they will consider is an Expert Advisor which does some of the routine component of their analysis. Automation will never be a match for serious traders. The FX exchange mechanism simply cannot be modeled in software. And even if it was possible the software would be so enormously complex that it would take decades to develop. It is a fact however, that automated or semi-automated trading can work fine for 4 straight weeks, non stop, beat manual traders and win at those competitions.